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We develop a behavioral asset pricing model in which agents trade in a market with information friction. Profit-maximizing agents switch between trading strategies in response to dynamic market conditions. Due to noisy private information…

Trading and Market Microstructure · Quantitative Finance 2019-05-02 Zhentao Shi , Huanhuan Zheng

We discuss some methods to quantitatively investigate the properties of correlation matrices. Correlation matrices play an important role in portfolio optimization and in several other quantitative descriptions of asset price dynamics in…

Statistical Finance · Quantitative Finance 2010-08-25 M. Tumminello , F. Lillo , R. N. Mantegna

We study indeterminacies in realization of ornaments and how they can be incorporated in a stochastic performance model applicable for music information processing such as score-performance matching. We point out the importance of temporal…

Artificial Intelligence · Computer Science 2016-08-04 Eita Nakamura , Nobutaka Ono , Shigeki Sagayama , Kenji Watanabe

Financial markets are a typical example of complex systems where interactions between constituents lead to many remarkable features. Here, we show that a pairwise maximum entropy model (or auto-logistic model) is able to describe switches…

Statistical Finance · Quantitative Finance 2014-01-28 Thomas Bury

A statistical physics model for the time evolutions of stock portfolios is proposed. In this model the time series of price changes are coded into the sequences of up and down spins. The Hamiltonian of the system is introduced and is…

Statistical Mechanics · Physics 2008-12-02 Jun-ichi Maskawa

The high-frequency cross-correlation existing between pairs of stocks traded in a financial market are investigated in a set of 100 stocks traded in US equity markets. A hierarchical organization of the investigated stocks is obtained by…

Statistical Mechanics · Physics 2008-12-02 Giovanni Bonanno , Fabrizio Lillo , Rosario N. Mantegna

Persistent homology has been widely used to discover hidden topological structures in data across various applications, including music data. To apply persistent homology, a distance or metric must be defined between points in a point cloud…

Sound · Computer Science 2025-12-15 Eunwoo Heo , Byeongchan Choi , Myung ock Kim , Mai Lan Tran , Jae-Hun Jung

We present an outlook of the studies on correlations in the price timeseries of stocks, discussing the construction and applications of "asset tree". The topic discussed here should illustrate how the complex economic system (financial…

Physics and Society · Physics 2015-06-26 Anirban Chakraborti

Music Structure Analysis is an open research task in Music Information Retrieval (MIR). In the past, there have been several works that attempt to segment music into the audio and symbolic domains, however, the identification and…

Sound · Computer Science 2023-03-27 Carlos Hernandez-Olivan , Sonia Rubio Llamas , Jose R. Beltran

We investigate a factor that can affect the number of links of a specific stock in a network between stocks created by the minimal spanning tree (MST) method, by using individual stock data listed on the S&P500 and KOSPI. Among the common…

Data Analysis, Statistics and Probability · Physics 2015-06-26 Cheoljun Eom , Gabjin Oh , Seunghwan Kim

Propelled by the increasing availability of large-scale high-quality data, advanced data modeling and analysis techniques are enabling many novel and significant scientific understanding of a wide range of complex social, natural, and…

Physics and Society · Physics 2016-04-12 Arram Bae , Doheum Park , Yong-Yeol Ahn , Juyong Park

We propose a flexible and multi-scale method for organizing, visualizing, and understanding datasets sampled from or near stratified spaces. The first part of the algorithm produces a cover tree using adaptive thresholds based on a…

Computational Geometry · Computer Science 2016-03-01 Paul Bendich , Ellen Gasparovic , Christopher J. Tralie , John Harer

Stock market returns are typically analyzed using standard regression, yet they reside on irregular domains which is a natural scenario for graph signal processing. To this end, we consider a market graph as an intuitive way to represent…

Portfolio Management · Quantitative Finance 2021-06-08 Alvaro Arroyo , Bruno Scalzo , Ljubisa Stankovic , Danilo P. Mandic

We consider a tick-by-tick model of price formation, in which buy and sell orders are modeled as self-exciting point processes (Hawkes process), similar to the one in [Bacry, Delattre, Hoffmann, Muzy, Modelling microstructure noise with…

Mathematical Finance · Quantitative Finance 2026-03-27 Paolo Dai Pra , Paolo Pigato

We investigate financial market correlations using random matrix theory and principal component analysis. We use random matrix theory to demonstrate that correlation matrices of asset price changes contain structure that is incompatible…

Statistical Finance · Quantitative Finance 2015-03-17 Daniel J. Fenn , Mason A. Porter , Stacy Williams , Mark McDonald , Neil F. Johnson , Nick S. Jones

Factor models characterize the joint behavior of large sets of financial assets through a smaller number of underlying drivers. We develop a network-based framework in which factors emerge naturally from the structure of interactions among…

Computational Finance · Quantitative Finance 2026-04-15 Jose Negrete , Jaime Joel Ramos

Financial market is an example of complex system, which is characterized by a highly intricate organization and the emergence of collective behavior. In this paper, we quantify this emergent dynamics in the financial market by using…

General Finance · Quantitative Finance 2011-09-07 Thomas Kauê Dal'Maso Peron , Francisco Aparecido Rodrigues

Topological phononic crystals, alike their electronic counterparts, are characterized by a bulk-edge correspondence where the interior of a material dictates the existence of stable surface or boundary modes. In the mechanical setup, such…

Mesoscale and Nanoscale Physics · Physics 2016-09-02 Roman Süsstrunk , Sebastian D. Huber

A surprising image of the stock market arises if the price time series of all Dow Jones Industrial Average stock components are represented in one chart at once. The chart evolves into a braid representation of the stock market by taking…

General Finance · Quantitative Finance 2014-06-16 Ovidiu Racorean

We study the time dependence of maximal spanning trees and asset graphs based on correlation matrices of stock returns. In these networks the nodes represent companies and links are related to the correlation coefficients between them.…

Physics and Society · Physics 2009-11-13 Tapio Heimo , Kimmo Kaski , Jari Saramaki